UAE and Czech Republic deepen new economy ties

UAE and Czech Republic have stepped up efforts to widen economic cooperation across advanced manufacturing, clean energy and digital industries, with ministers from both countries reviewing a slate of joint projects targeted for rollout in 2026.

Talks between UAE Minister of Economy Abdulla bin Touq Al Marri and Czech Minister of Industry and Trade Jozef Síkela focused on expanding collaboration in sectors described as central to the “new economy”, including artificial intelligence, fintech, smart mobility, aerospace and sustainable technologies. Officials said the discussions also covered mechanisms to increase bilateral trade, facilitate investment flows and strengthen partnerships between private sector entities.

Bilateral trade between the two countries has shown steady growth over the past decade, supported by the UAE’s position as a logistics and financial hub linking Europe, Asia and Africa, and the Czech Republic’s advanced industrial base within the European Union. Non-oil trade has formed a significant part of the relationship, with machinery, automotive components, electronics and precision engineering products among the main categories exchanged.

During the meeting, both sides examined opportunities to connect innovation ecosystems, including cooperation between start-ups, research institutions and technology parks. UAE officials highlighted the country’s push to attract high-value industries under its economic diversification agenda, which seeks to raise the contribution of non-oil sectors to GDP and position the federation as a global centre for advanced industries and entrepreneurship.

Czech representatives, for their part, emphasised their country’s strengths in industrial automation, nanotechnology, cybersecurity and transport engineering. Prague has sought to deepen commercial engagement beyond traditional European markets, identifying the Gulf region as a strategic partner for investment and technology exchange. The Czech government has in recent years prioritised support for exporters and small and medium-sized enterprises seeking to expand into high-growth markets.

Energy transition formed a central part of the dialogue. Both countries have set out long-term climate and sustainability targets, with the UAE committing to net-zero emissions by 2050 and investing heavily in renewable energy projects domestically and abroad. Czech authorities are navigating their own energy transformation, balancing industrial competitiveness with decarbonisation goals. Discussions touched on collaboration in hydrogen technologies, energy storage systems and grid modernisation.

Aviation and space technologies were also on the agenda, reflecting shared ambitions to strengthen high-tech manufacturing capabilities. The UAE has invested in space exploration and satellite development through its national space programme, while Czech firms have established expertise in aerospace engineering and components. Officials signalled interest in joint research and development initiatives, as well as knowledge exchange programmes between universities and technical institutes.

Financial cooperation is expected to underpin these sectoral ambitions. Both sides explored ways to encourage cross-border investment through sovereign wealth funds, venture capital platforms and public-private partnerships. The UAE’s network of comprehensive economic partnership agreements and its business-friendly regulatory environment were cited as factors that could support Czech companies seeking regional expansion.

The meeting also reviewed preparations for business forums and trade missions scheduled for 2026, aimed at connecting entrepreneurs and investors from both countries. Plans include sector-specific workshops in advanced manufacturing and digital transformation, alongside exhibitions showcasing emerging technologies. Officials indicated that memoranda of understanding under discussion would provide frameworks for cooperation in innovation, skills development and regulatory alignment.

Analysts note that the engagement reflects a broader pattern of Gulf–Central European economic ties gaining traction as global supply chains evolve. Companies are increasingly seeking diversified production bases and resilient trade corridors, prompting governments to cultivate partnerships that combine technological expertise with access to new markets. For the UAE, deeper links with EU member states offer avenues to strengthen trade with the bloc while advancing its diversification strategy. For the Czech Republic, collaboration with a capital-rich Gulf economy provides opportunities for industrial expansion and co-investment in third markets.